Trading advice in the cryptocurrency industry should always be scrutinized. It is never in any trader’s best interest to share their secrets with others free of charge. When the CEO of the biggest crypto trading platform decides to offer “advice’, things get very interesting. Although his recommendation on BNB should not be taken as actual advice, it still sends the wrong message to the community as a whole.
BNB Margin Trading Goes Live
It was a matter of time until Binance expanded upon its margin trading offerings. The company recently introduced this trading method in an effort to let the platform generate more revenue. Given the volatile nature of cryptocurrencies, it is only normal margin trading becomes very popular. With these fluctuating values, there is a lot of money to be made or lost by exploring this option.
In a recent turn of events, Binance decided to introduce margin trading for Binance Coin. Many people wondered why this option wasn’t available from day one. Given how it is the native currency of the exchange itself, one would expect it to be accessible from day one. Now that BNB has gone live on the platform, it will be interesting to see how the price changes in the hours and days ahead. So far, it seems as if the value is on the rise, albeit that is primarily due to Bitcoin regaining some lost value.
Binance CEO Gives “Advice”
The controversy this week comes in the form of a tweet by Changpeng Zhao. The CEO of Binance announced the launch of BNB margin trading. That in itself is business as usual, although that was only part of the message. In the same Tweet, he also “advises” people to not go short on BNB as they would get “rekt” by doing so. This is not the kind of message a CEO should spread regarding a currency which is native to his own company.
I don't recommend tweeting like this.
— dark pill (@DanDarkPill) August 29, 2019
It did not take long for users to respond negatively to this hidden trading advice. Albeit this message was shared two weeks ago, it still causes a lot of controversy today. That is only to be expected, as a lot of people tend to scrutinize CZ’s Tweets at all times. Any information he shares with the world will be reviewed by the community. Even if it wasn’t his intent to offer any trading advice, he should refrain from Tweets such as that one.
Shorting BNB Worked Well so Far
Ironically, the Binance Coin has decreased by nearly 25% from the time CZ told traders to not go short on BNB. As such, it is safe to say those who did short Binance’s native currency will have made good money from margin trading. Given the current market conditions, it is a bit unclear which direction this market will head in throughout the remainder of 2019. A lot of its momentum will hinge on Bitcoin, for rather obvious reasons.
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